Aquila Capital to launch EUR 750m investment fund

German investment firm Aquila Capital is launching its fourth Energy Transition Infrastructure Fund (ETIF) with a target volume of EUR 750 million (USD 925 m).

Structured as a Luxembourg-based Reserved Alternative Investment Fund (RAIF) with a target volume of EUR 750 million and a term of 12 years, the ETIF will seek investments in the three most important subsectors of the energy transition. According to Aquila Capital, these are: renewable energy generation, energy storage and energy transportation.

The target net internal rate of return (IRR) is 8% to 10% per year.

Aquila Capital said on Moday, its new strategy will primarily focus on onshore and offshore wind power, photovoltaics, hydropower, electricity grids and heat networks, as well as energy storage with an emphasis on greenfield projects.

Geographically, it will seek investments in continental Europe and the Nordic countries, with possible additional allocations in Great Britain and in Central and Eastern Europe.

Ten to 15 investments with an average equity ticket of EUR 50 to 75 million are planned.

Aquila Capital currently manages renewable energy generation assets with a capacity of about 2,200MW.

(EUR 1 = USD 1.233)

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